1
Exhibit 10.k
HUFFY SECTION: HUMAN RESOURCES
CORPORATION
POLICY NO.: 128 (RESTRICTED)
ISSUE DATE: 09/29/00
SUPERSEDES: 07/15/00
SUBJECT: PERFORMANCE INCENTIVE PLAN - 2000
POLICY
CERTAIN EXEMPT EMPLOYEES OF THE CORPORATION AND ITS SUBSIDIARIES SHALL BE GIVEN
CONSIDERATION FOR PAYMENT UNDER THE CORPORATION'S PERFORMANCE INCENTIVE PLAN.
PAYMENTS WILL GENERALLY BE CONSIDERED ON THE BASIS OF CORPORATE AND HUFFY
COMPANY FINANCIAL RESULTS AND, FOR SOME POSITIONS, INDIVIDUAL PERFORMANCE
AGAINST OBJECTIVES.
THE SCHEDULES SET FORTH BELOW ARE GUIDELINES ONLY AND PAYMENTS MAY BE MODIFIED
OR OMITTED BY MANAGEMENT, OR BY THE COMPENSATION COMMITTEE OF THE BOARD OF
DIRECTORS, IN THEIR SOLE DISCRETION.
PAYMENTS SHALL BE MADE ONLY TO EMPLOYEES WHOSE PERFORMANCE IS ACCEPTABLE, AS
DETERMINED AT THE SOLE DISCRETION OF HUFFY CORPORATION.
FINANCIAL INCENTIVE
- -------------------
I. Basis and Level of Awards
-------------------------
Incentive Opportunity as a % of
Actual Base Salary
------------------
Thresh. Target Max
------- ------ ---
A. Chairman's (REV)
Corporate E.P.S. vs. PP 3 2/3% 14 2/3% 29 1/3%
Corporate BONA vs. PP 3 2/3% 14 2/3% 29 1/3%
Cash Flow vs. PP 3 2/3% 14 2/3% 29
11.0% 44.0% 88.0%
B. Other Corporate Officers' (REV)
Corporate E.P.S. vs. PP 2.0% 8.0% 16.0%
Corporate RONA vs. PP 2.0% 8.0% 16.0%
Cash Flow vs. PP 2.0% 8.0% 16.0%
6.0% 24.0% 48.0%
C. Huffy Company Presidents
------------------------
1. HSC, HSF and WIS
Huffy Company RONA vs. PP 4.0% 8.0% 16.0%
Huffy Company EBIT vs. PP 4.0% 8.0% 16.0%
Huffy Company Cash Flow vs. PP 4.0% 8.0% 16.0%
12.0% 24.0% 48.0%
Page 1 of 15
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HUFFY SECTION: HUMAN RESOURCES
CORPORATION
POLICY NO.: 128 (RESTRICTED)
ISSUE DATE: 09/29/00
SUPERSEDES: 07/15/00
- --------------------------------------------------------------------------------
SUBJECT: PERFORMANCE INCENTIVE PLAN - 2000
2. HBC' (REV)
Huffy Company RONA vs. PP 4.0% 8.0% 16.0%
Huffy Company EBIT vs. PP 4.0% 8.0% 16.0%
Huffy Company Cash Flow vs. PP 4.0% 8.0% 16.0%
12.0% 24.0% 48.0%
D. Huffy Company Staffs
--------------------
1. HSC, HSF and WIS
Huffy Company RONA vs. PP 3-1/3% 6-2/3% 13-1/3%
Huffy Company EBIT vs. PP 3-1/3% 6-2/3% 13-1/3%
Huffy Company Cash Flow vs. PP 3-1/3% 6-2/3% 13-1/3%
10.0% 20.0% 40.0%
2. HBC' (REV)
Huffy Company RONA vs. PP 3-1/3% 6-2/3% 13-1/3%
Huffy Company EBIT vs. PP 3-1/3% 6-2/3% 13-1/3%
Huffy Company Cash Flow vs. PP 3-1/3% 6-2/3% 13-1/3%
10.0% 20.0% 40.0%
3. HSF VP/GM - In-Home(2) (REV)
In-Home EBIT vs. PP 3.75% 7.5% 15.0%
HSF EBIT vs. PP 1.25% 2.5% 5.0%
HSF RONA vs. PP 2.50% 5.0% 10.0%
HSF Cash Flow vs. PP 2.5% 5.0% 10.0%
10.00% 20.0% 40.0%
4. HSF VP - In-Store(2) (REV)
In-Store EBIT vs. PP 3.75% 7.5% 15.0%
HSF EBIT vs. PP 1.25% 2.5% 5.0%
HSF RONA vs. PP 2.5% 5.0% 10.0%
HSF Cash Flow vs. PP 2.5% 5.0% 10.0%
10.00% 20.0% 40.0%
Page 2 of 15
3
HUFFY SECTION: HUMAN RESOURCES
CORPORATION
POLICY NO.: 128 (RESTRICTED)
ISSUE DATE: 09/29/00
SUPERSEDES: 07/15/00
- --------------------------------------------------------------------------------
SUBJECT: PERFORMANCE INCENTIVE PLAN - 2000
5. VP/GM - Merchandising(2) (REV)
Merchandising EBIT vs. PP 3.75% 7.5% 15.0%
HSF EBIT vs. PP 1.25% 2.5% 5.0%
HSF RONA vs. PP 2.5% 5.0% 10.0%
HSF Cash Flow vs. PP 2.5% 5.0% 10.0%
10.00% 20.0% 40.0%
6. VP - Home Center
HSF Cash Flow 1.25% 2.50% 5.00%
HSF RONA 1.25% 2.50% 5.00%
In - Home Margin Obj 2.50% 5.00% 110.00%
In - Home Sales Obj 5.00% 10.00% 20.00%
10.00% 20.00% 40.00%
7. Other HSF Staff Level(2) (REV)
In-Store EBIT vs. PP 2.50% 5.0% 10.0%
Merchandising EBIT vs. PP 1.25% 2.5% 5.0%
In-Home -EBIT vs. PP 1.25% 2.5% 5.0%
HSF RONA vs. PP 2.50% 5.0% 10.0%
HSF Cash Flow vs. PP 2.50% 5.0% 10.0%
10.00% 20.0% 40.0%
Note: 1. For 2000 only, the incentive opportunities for these groups (REV)
will exclude Cash Flow, due to the impact of sourcing during (REV)
the HBC business transition. Cash Flow opportunity will be (REV)
prorated to the remaining opportunity components.
2. For 2000, only HSF staff positions will be eligible for the
award generated under the criteria noted in #3 through #6, or
#1, whichever is greater.
E. Corporate Exempt
----------------
1. Staff Level Positions
Corporate E.P.S. vs. PP 1-2/3% 6-2/3% 13-1/3%
Corporate RONA vs. PP 1-2/3% 6-2/3% 13-1/3%
Cash Flow vs. PP 1-2/3% 6-2/3% 13-1 /3%
5.0% 20.0% 40.0%
2. Other Corporate Exempt
Corporate E.P.S. vs. PP 2/3% 2-2/3% 5-1/3%
Corporate RONA vs. PP 2/3% 2-2/3% 5-1/3%
Cash Flow vs. PP 2/3% 2-2/3% 5-1/3%
2.0% 8.0% 16.0%
Page 3 of 15
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HUFFY SECTION: HUMAN RESOURCES
CORPORATION
POLICY NO.: 128 (RESTRICTED)
ISSUE DATE: 09/29/00
SUPERSEDES: 07/15/00
- --------------------------------------------------------------------------------
SUBJECT: PERFORMANCE INCENTIVE PLAN - 2000
F. Other Exempt
------------
1. Huffy Company Exempt, except
WIS Exempt, certain HSF & HSC
Sales Personnel, certain HSF
Exempt, and HSC Exempt
Note: Sales incentive plans exist for certain personnel at HSC, HSF & WIS.
The most current version of which are on file in the Corporate Human
Resources Department.
Huffy Company EBIT vs. PP 1-2/3% 3-113% 6-2/3%
Huffy Company RONA vs. PP 1-2/3% 3-1/3% 6-2/3%
Huffy Company Cash Flow vs. PP 1-2/3% 3-1 /3% 6-2/3%
5.0% 10.0% 20.0%
2. HSF Customer Service Managers
HSF In-Home EBIT vs. PP 1.875% 3.75% 7.5%
HSF EBIT vs. PP 0.625% 1.25% 2.5%
HSF RONA vs. PP 2.500% 5.00% 10.0%
3. HSF Merch Business Manager 5.000% 10.0% 20.0%
HSF Manager Program Management
Merchandising EBIT vs. PP 1.875% 3.75% 7.5%
HSF EBIT vs. PP 0.625% 1.25% 2.5%
HSF RONA vs. PP 2.500% 5.00% 10.0%
5.000% 10.0% 20.0%
4. HSF Regional Managers
In Store and Merchandising
National Operations Manager - In Home
National Operations Manager - Wal*Mart
Responsibility Specific Cust. Satisfaction Results 1.250% 2.50% 5.0%
Responsibility Specific Gross Field Margin $ vs. PP 1.250% 2.50% 5.0%
HFS EBIT vs. PP 0.625% 2.50% 5.0%
HSF RONA vs. PP 0.625% 2.50% 5.0%
----- ---- ----
3.750% 10.0% 20.0%
Page 4 of 15
5
HUFFY SECTION: HUMAN RESOURCES
CORPORATION
POLICY NO.: 128 (RESTRICTED)
ISSUE DATE: 09/29/00
SUPERSEDES: 07/15/00
- --------------------------------------------------------------------------------
SUBJECT: PERFORMANCE INCENTIVE PLAN - 2000
5. HSF Area Managers - Assembly, Home Center, Wal*Mart
HSF Area Managers - In Home
HSF Zone Managers - Merch
Responsibility Specific Cust. Satisfaction Results 1.250% 2.50% 5.0%
Responsibility Specific Gross Field Margin $ vs. PP 1.250% 2.50% 5.0%
HFS EBIT vs. PP 0.625% 2.50% 5.0%
HSF RONA vs. PP 0.625% 2.50% 5.0%
----- ---- ---
3.750% 10.0%
6. HSF Market Managers - In Home
HSF Service Managers - In Store
HSF Assistant Zone managers (assigned zone)
(Level below AM in each business)
Area Segment Margin $ vs. PP $ 1.25% 2.50% 5.0%
HFS EBIT vs. PP 0.625% 2.50% 5.0%
HSF RONA vs. PP 0.625% 2.50% 5.0%
----- ---- ---
2.500% 5.00% 10.0%
'Responsibility Specific customer Satisfaction Results 99.500% 99.70% 99.9%
7. All WIS exempt positions with Manager or
Director titles (excluding WIS National Sales
Manager and WIS Field Management Personnel)
Huffy Company EBIT vs. PP 2.5% 5.0% 10.0%
Huffy Company RONA vs. PP 2.5% 5.0% 10.0%
---- ---- ----
5.0% 10.0% 20.0%
8. Other WIS Exempt employees
(excluding WIS Field
Management, WIS National Sales Manager,
WIS Service Managers, WIS Managers -In-Training,
WIS National Account Managers and WIS
Account Managers)
Huffy Company EBIT vs. PP 1.25% 2.5% 5.0%
Huffy Company RONA vs. PP 1.25% 2.5% 5.0%
2.50% 5.0% '10.0%
Page 5 of 15
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HUFFY SECTION: HUMAN RESOURCES
CORPORATION
POLICY NO.: 128 (RESTRICTED)
ISSUE DATE: 09/29/00
SUPERSEDES: 07/15/00
- --------------------------------------------------------------------------------
Subject: PERFORMANCE INCENTIVE PLAN - 2000
II. Huffy Company Presidents, in lieu of bonus criteria otherwise specified for
bonus eligible personnel in this Policy 128 and related supplements, may
specify not more than two bonus measures totaling a maximum of 50% of any
individual's bonus opportunity. Such measures must be specific,
quantifiable criteria which are explicitly part of the Huffy Company's
profit plan. They must be documented, including award scales, and submitted
to the Director, Corporate Human Resources, and approved by the Vice
President Human Resources and Organization Development prior to the
beginning of the calendar year for which they are applicable.
III. Award Scales'
Huffy Company (excluding HSF) RONA vs. Plan
Huffy Company EBIT vs. Plan % of Targeted
and Huffy Company Cash Flow Vs. Plan Award Earned(2)
------------------------------------ ------------
Under 90% -0
90% Threshold 50
95% 75
100% Target 100
105% 133 1/3
110% 166 2/3
115% 200
Corporate RONA vs. Plan
Corporate Cash Flow vs. Plan % of Targeted
Corporate Eps vs. Plan Award Earned(2)
---------------------- ------------
Under 85% -0
85% Threshold 25
90% 50
95% 75
100% Target 100
110% 150
120% Maximum 200
% of Target
HSF RONA vs. Plan Award Earned(2)
----------------- ------------
Under 90% -0
90% Threshold 50
95% 75
100% Target 100
105% 150
110% Maximum 200
Page 6 of 15
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HUFFY SECTION: HUMAN RESOURCES
CORPORATION
POLICY NO.: 128 (RESTRICTED)
ISSUE DATE: 09/29/00
SUPERSEDES: 07/15/00
SUBJECT: PERFORMANCE INCENTIVE PLAN - 2000
HSF District Gross % of Targeted
Field Profit $ VS. PP Award Earned(2)
--------------------- -------------
Under 90% -0
90 25
100 100
110+ 200
HSF Area Gross Field % of Targeted
Margin $ Vs. PP Award Earned
---------------- ------------
Under 90% -0
90 25
100 100
110+ 200
% of Targeted
HSF In-Store EBIT Award Earned
----------------- ------------
Under 90% -0-
90 Threshold 50
95 75
100 Target 100
105 1331/3
110 1662/3
115 Maximum 200
HSF Modified In-Store EBIT
--------------------------
Under 90% 0
90% Threshold 50
100% Target 100
105.4% Maximum 200
HSF In-Home EBIT
----------------
Under 113.3% 0
113.3% Threshold 50
100% Target 100
80.0% Maximum 200
Page 7 of 15
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HUFFY SECTION: HUMAN RESOURCES
CORPORATION
POLICY NO.: 128 (RESTRICTED)
ISSUE DATE: 09/29/00
SUPERSEDES: 07/15/00
- --------------------------------------------------------------------------------
SUBJECT: PERFORMANCE INCENTIVE PLAN - 2000
HSF Merchandising EBIT
----------------------
Under 72.4% 0
72.4% Threshold 50
100% Target 100
137.9% Maximum 200
HSF District Gross Field Profit % vs. PP % of Targeted
HSF Area Gross Field Margin % vs. PP Award Earned
------------------------------------ ------------
Greater than -1.00% below -0-
-1.00% Threshold 25
-0.67% 50
-0.33% 75
Profit Plan% Target 100
+0.5%
133
+1.0% 167
+1.5% Maximum 200
HSF Merchandising Actual Gross Field Profit Percent vs. PP%
-----------------------------------------------------------
Greater than 1.00% below 0
1.00 Threshold 25
0.67 50
0.33 75
Profit Plan % Target 100
+0.5 133
+1.0 167
+1.5 Maximum 200
Zone AGMM*% vs. PP%
-------------------
Greater than 1.00% below 0
-1.00 Threshold 25
-0.67 50
-0.33 75
Profit Plan % Target 100
+0.5 133
+1.0 167
+1.5 Maximum 200
1. The scales are sliding. When actual performance falls between the points on
the scale, it will be adjusted to the nearest 1/10th of 1% and interpolated
to determine the award level.
Page 8 of 15
9
HUFFY SECTION: HUMAN RESOURCES
CORPORATION
POLICY NO.: 128 (RESTRICTED)
ISSUE DATE: 09/29/00
SUPERSEDES: 07/15/00
- --------------------------------------------------------------------------------
SUBJECT: PERFORMANCE INCENTIVE PLAN - 2000
2. Percent of targeted award earned is used as a multiple of incentive
target which varies by level of employee. Refer to Section I.
IV. Positions Covered
A. Corporate Officers and Huffy Company Presidents
Corporate Officers
------------------
Chairman, President and CEO
Vice President - Finance and CFO
Vice President - Controller
Vice President - General Counsel and Secretary
Vice President - Human Resources and Organization Development
B. Huffy Company Staff
- HBC
---
V.P. & Controller
V.P. Operations
V.P. Human Resources & IT
V.P. Sales & Marketing
V.P. International Sales
President Royce Union
HSC
---
V.P. Sales
V.P. Controller
V.P. Materials Management
V.P. Global Operations
V.P. Marketing & Product Development
V.P. Product Engineering & Technology
HSF
---
V.P. Operations - In-Store
V.P. Finance
V.P. Sales/Marketing
V.P. Human Resources
V.P. Merchandising Services
V.P. In-Home
Page 9 of 15
10
HUFFY SECTION: HUMAN RESOURCES
CORPORATION
POLICY NO.: 128 (RESTRICTED)
ISSUE DATE: 09/29/00
SUPERSEDES: 07/15/00
- --------------------------------------------------------------------------------
SUBJECT: PERFORMANCE INCENTIVE PLAN - 2000
- WIS
---
V.P. Operations
V.P. Finance and Controller
V.P. Technology & Information Systems
V.P. Sales and Account Management
V.P. Human Resources
V. Individual Personal Objectives
------------------------------
Incentive Opportunity as a % of
Actual Base Salary
------------------
Below
Position Threshold Threshold Maximum
A. Chairman, President & CEO 0% 11.0% 22.0%
B. Corporate Officers and
----------------------
Huffy Company Presidents 0% 6.0% 12.0%
Huffy Company Staff 0% 5.0% 10.0%
D. Corporate Exemai
----------------
1. Staff Level 0% 5.0% 10.0%
2. Other Exempt 0% 2.0% 4.0%
For those individuals who have a portion of their incentive measured on this
basis, the following implementation procedure will be used:
1. Each individual will draw up objectives covering the calendar year
based on supporting the supervisor's objectives and his own.
2. These objectives should have the following characteristics:
a) Not be associated with EBIT or RONA goals in the Profit Plan.
(Financial goals for such things as cost reduction or similar
projects are appropriate goals.)
b) Be as specific and as measurable as to successful attainment as
possible. (A project need not be completed in the calendar year.
The objective can be to obtain a specific status in the project
by calendar year end.)
Page 10 of 15
11
HUFFY SECTION: HUMAN RESOURCES
CORPORATION
POLICY NO.: 128 (RESTRICTED)
ISSUE DATE: 09/29/00
SUPERSEDES: 07/15/00
- --------------------------------------------------------------------------------
Subject: PERFORMANCE INCENTIVE PLAN - 2000
c) 1) Chairman shall develop no more than 7 to 8 objectives.
2) Other Corporate Officers and Huffy Company Presidents shall each
develop no more than 6 objectives.
3) Huffy Company Corporate Staff Level positions and Other
Corporate. Exempt shall each develop no more than 3 to 5
objectives.
d) A "degree of difficulty" should be assigned to each objective.
3. The objectives and degrees of difficulty shall be reviewed between the
individual and his/her supervisor and agreement reached on:
a) Completeness of list
b) State of objectives
c) Degree of difficulty
It is the supervisor's responsibility to ensure that there is some
consistency in the measurement of "degree of difficulty" among all
his/her subordinates.
4. The Personal objectives development and results schedules will be annually
set in the fall of each year.
5. The participant shall evaluate his/her own performance and then submit the
evaluation to his supervisor who shall review and approve the evaluation.
Final approval of results shall be made by the appropriate Huffy Company
President or Corporate Officer. (A MINIMUM one over one approval is also
required.)
6. Each individual shall be informed by his supervisor of his score, but only
after all approvals have been secured.
7. Notwithstanding the foregoing, payments for personal objectives performance
are expressly conditioned upon and made subject to the following base
financial criteria:
All Corporate Exempt
- --------------------
Corporate E.P.S. less than 75% of Target No bonus shall be paid for
E.P.S. for Corporate bonus purposes performance of personal
objectives
Page 11 of 15
12
HUFFY SECTION: HUMAN RESOURCES
CORPORATION
POLICY NO.: 128 (RESTRICTED)
ISSUE DATE: 09/29/00
SUPERSEDES: 07/15/00
SUBJECT: PERFORMANCE INCENTIVE PLAN - 2000
Corporate E.P.S. at least 75%, but less than 50% of calculated bonus for
90%, of Target E.P.S. for Corporate bonus performance of personal
purposes objectives shall be paid
Corporate E.P.S. 90% or greater of Target 100% of calculated bonus E.P.S. for
Corporate bonus purposes for performance of personal
objectives
Huffy Companies
- ---------------
Huffy Company EBIT less than 75% No bonus shall be paid for
of approved Huffy Company Profit Plan performance of personal objectives
Huffy Company EBIT at least 75%, but less 50% of calculated bonus for
than 90%, of approved Huffy Company Profit performance of personal
Plan objectives shall be paid
Huffy Company EBIT 90% or greater of 100% of calculated bonus for performance
approved Huffy Profit Plan of personal objectives shall be paid
VI. Implementation
--------------
1. Eligibility
-----------
All exempt employees on the payroll on or before the first
business day of the calendar year shall be eligible for
consideration for a full incentive opportunity.
New Hires: Employees starting AFTER the first business day
of the calendar year shall be eligible for the
percentage of annual incentive opportunity shown
below:
Percentage of Annual
Hire Date Incentive Opportunity
--------- ---------------------
During 1st quarter 75%
During 2nd quarter 50%
During 3rd quarter 25%
During 4th quarter 0%
Page 12 of 15
13
HUFFY SECTION: HUMAN RESOURCES
CORPORATION
POLICY NO.: 128 (RESTRICTED)
ISSUE DATE: 09/29/00
SUPERSEDES: 07/15/00
- --------------------------------------------------------------------------------
Subject: PERFORMANCE INCENTIVE PLAN - 2000
Transfers, Promotions or Demotions: Individuals transferred, promoted
or demoted during the calendar year shall have incentive opportunity as
follows:
Calculation Based on
--------------------
Old Actual New Actual
Base Salary Base Salary
Old. Opp. Level New Opp. Level
Transferred, Promoted or Demoted
During 1st Quarter 25% 75%
During 2nd Quarter 50% 50%
During 3rd Quarter 75% 25%
During 4th Quarter 100% 0%
Note: Non-exempt and/or hourly employees promoted to exempt positions are
eligible for incentive consideration as above but only for those
quarters in which they held exempt positions. Also, status changes
(including transfers, promotions and demotions, but excluding new
hires) for incentive eligible employees at WIS which are effective for
the first pay period beginning on or after the first day of the quarter
shall be treated for incentive purposes as if they were effective the
last day of the prior quarter.
Terminations:
To be eligible to receive the Performance Incentive
Plan payment for a calendar year, an employee must be
on the active payroll at the time payment for that
calendar year is made (date check is issued).
Death or Retirement: Employees who retired or died during or after, the
calendar year for which incentive is being calculated
and who met the requirement of being on the active
payroll during the year will be given consideration
for an incentive payment on basis of the following
percentage of full incentive opportunity: retired or
died in 1 st Qtr - 25%; 2nd Qtr - 50%; 3rd Qtr - 75%;
4th Qtr -100%.
Payment for deceased employees shall be made to the
beneficiary designated under the Salaried Employees
Group Term Life Insurance Plan.
Active payroll is defined as receiving wages (recorded on the Federal W-2 form)
from the Corporation or one of the Huffy Companies. Except for those terminated
or retiring or deceased employees described above, employees absent for any
reason and not receiving wages (as defined above) are not considered on the
active payroll.
Exception to the eligibility requirements must be approved by the Vice President
Human
Page 13 of 15
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HUFFY SECTION: HUMAN RESOURCES
CORPORATION
POLICY NO.: 128 (RESTRICTED)
ISSUE DATE: 09/29/00
SUPERSEDES: 07/15/00
Subject: PERFORMANCE INCENTIVE PLAN - 2000
Resources & Organization Development or CEO (in particular, requests for
exceptions involving transfers and new hires when approval for such transfer or
new hire has been obtained).
2. Payment Except as noted below, payment for performance incentive shall
------- be annual and shall occur in march of each year for the prior
calendar year's results.
3. Calculations All incentive calculations will be rounded up to the nearest
------------ $25.00 increment and the minimum incentive payment to be paid
will be $125.00 per employee, provided employee is eligible
for incentive and such incentive is approved.
4. Definitions
-----------
Consolidated RONA
-----------------
Profit after tax after cost of plan plus tax affected interest
expense divided by the twelve (12) month rolling average of
total assets less current liabilities excluding all interest
bearing debt.
E. P. S. Earnings per common share.
--------
Huffy Company RONA Earnings before interest, taxes, and goodwill
------------------ amortization, tax affected at the current profit plan
tax rate, divided by the twelve (12) month rolling
average of total assets other than goodwill less
current liabilities excluding all interest bearing
debt.
EBIT Earnings before interest and taxes and goodwill
---- amortization.
Cash Flow The free cash flow as approved by the board of
--------- directors in the profit plan for the bonus year in
question, modified to reflect the actual beginning of
the year balance sheet balances, as opposed to the
projected balance sheet balances used for profit
planning purposes.
Actual Base Salary Employee's actual base salary as of the January 1 of
------------------ the calendar year for which bonus is calculated.
Promotion One or more salary grades up from current salary
grade.
Demotion One or more salary grades down from current salary
grade.
Transfer A change in position with substantially different
duties and responsibilities which does not constitute
a promotion or demotion.
Page 14 of 15
HUFFY
CORPORATION
15
HUFFY SECTION: HUMAN RESOURCES
CORPORATION
POLICY NO.: 128 (RESTRICTED)
ISSUE DATE: 09/29/00
SUPERSEDES: 07/15/00
Subject: PERFORMANCE INCENTIVE PLAN - 2000
Distribution of This Policy
- ---------------------------
Restricted to Corporate Officers, Huffy Company Presidents, and Staff Level
positions, except for Policy 128-A, 128-B, 128-C, which is restricted to
Corporate Officers and Huffy Company Presidents.
Interpretation and Exceptions
- -----------------------------
Interpretation and exceptions to this policy will be the responsibility of the
Corporate Vice President Human Resources and Organization Development.
- ----------------------------------- ----------------------------------
Vice President, Human Resources and Chairman, President and Chief
Organization Development Executive Officer
Page 15 of 15